(a) A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection involved, and the method generally used by it or others to present those items.
(b) A collecting bank may send:
(1) An item directly to the payor bank;
(2) An item to a nonbank payor if authorized by its transferor; and
(3) An item other than documentary drafts to any nonbank payor, if authorized by Federal Reserve regulation or operating circular, clearing-house rule, or the like.
(c) Presentment may be made by a presenting bank at a place where the payor bank or other payor has requested that presentment be made.
Structure Maryland Statutes
Title 4 - Bank Deposits and Collections
Subtitle 2 - Collection of Items: Depositary and Collecting Banks
Section 4-202 - Responsibility for Collection or Return; When Action Timely
Section 4-203 - Effect of Instructions
Section 4-204 - Methods of Sending and Presenting; Sending Directly to Payor Bank
Section 4-205 - Depositary Bank Holder of Unindorsed Item
Section 4-206 - Transfer Between Banks
Section 4-207 - Transfer Warranties
Section 4-208 - Presentment Warranties
Section 4-209 - Encoding and Retention Warranties
Section 4-210 - Security Interest of Collecting Bank in Items, Accompanying Documents, and Proceeds
Section 4-211 - When Bank Gives Value for Purposes of Holder in Due Course
Section 4-213 - Medium and Time of Settlement by Bank
Section 4-214 - Right of Charge-Back or Refund; Liability of Collecting Bank; Return of Item